Child Care Options: Benefits, Downsides & Costs

Updated: October 4, 2016

Kristin Rogers/Stocksy

Going back to work part or full-time — or even considering working from home — and not sure what your options are? Check out our guide for benefits, downsides and costs, from day care to nannies, au pair and more.

For most of us, child care is part of being a parent these days. Everyone needs another set of hands sometimes, even if only for the occasional sanity-saving evening out with friends. And single parents need a pinch hitter more than anyone. But child care costs, especially for the full-time variety so many working moms need, can bring on serious sticker shock. Taking careful stock of your options and weighing them against your needs will help you make the most cost-effective decision that’s still right for your child. And it’s a good idea to start your research sooner rather than later: If you need to make child care arrangements on short notice, you may make a hasty decision that isn’t the best one for your little one or for you. Here’s a primer to the various types and costs of child care, along with resources for more information.

What it is: A state-licensed facility where parents drop children off, usually for a full day. These are often large centers that group children by age in classrooms, similar to a school.

Pros: Day care is a great choice if you have a job with little flexibility in hours or the ability to work from home. Day care centers offer a structured day for your child, with time for outdoor play, learning, meals and naps. Socialization is a big plus. Most “teachers,” as caregivers in day care centers are often referred to, are either working on or have completed a degree in early childhood education or a similar field. The top day care centers double as preschools when kids get to age 2 or 2.5, with a formal curriculum and progress reports.

Cons: If your child needs one-on-one attention to thrive, this may not be the best choice — although a group environment works well for many kids. If you think you’d have a hard time hearing your nearly-potty-trained child had an accident, or that the organic grapes you carefully packed for his snack somehow never found their way out of his little backpack, this may not be the route for you. Also, since rates are per child, the cost can be prohibitive with two (or more) children.

Cost: Fees vary, sometimes dramatically, based on where you live. And the younger the child, the more you’ll pay: By law, an infant requires a lower teacher-child ratio than a 4-year-old. According to a 2014 report by ChildCare Aware of America, the average monthly cost of day care for an infant ranges from $458 (in Mississippi) to $1,379 (in Massachusetts). For a 4-year-old, costs ranged from $376 (in Tennessee) to $1,206 (in Massachusetts).

Family Day Care

What it is: A family day care is similar to a day care center, except it’s with fewer kids and located in the provider's home — who may or may not be required to be licensed by your state. Family day care allows up to five children, while group-family day care allows up to 12 kids.

Pros: Your kids benefit from the comfort and intimacy of an in-home day care setting, plus more one-on-one attention than is typically possible in a center. Family day care is also slightly more affordable than a center.

Cons: The caregivers may not be licensed or trained. And when a sole caregiver inevitably gets sick or takes a vacation, you’ll need a reliable back-up option.

Cost: Again, fees can very a lot depending on where you live, with older kids costing more than younger ones. According to a 2014 report by Child Care Aware of America, the average monthly cost of family day care for an infant ranges from $380 (in Mississippi) to $894 (in New York). For a 4-year-old, costs ranged from $337 (in South Carolina) to $830 (in New York).

Nanny

What it is: A career caregiver who watches over all the children in a family. For the (relatively few) parents who can provide a dedicated bedroom and bathroom, live-in nannies are an option; otherwise, they’re referred to as “live-out.” Some nannies do light housekeeping as part of the deal.

Pros: One-on-one care by someone who will build a relationship with your child. Nannies typically want to stay with a family they like for the long haul, watching the children grow up. A nanny often becomes like a member of the family.

Cons: You’re reliant on one person with a life of her own. If she gets a stomach bug or a flat tire, you’re stuck. She’ll take time off throughout the year for vacations and family obligations, for which you’ll need to arrange for back-up care. And if a long-time nanny quits, it can be hard on the kids.

Cost: It depends on location, with an average hourly rate at about $15 for one child, according to Urban Sitter’s most recent pay survey — which works out to $2,400 per month (if you work an average of 40 hours per week). If you’re providing room and board, you can negotiate a lower salary. And don’t forget: When you hire a nanny, you become an employer — which means on top of salary you need to provide disability insurance. Plus the IRS requires you to pay employment tax if you pay a nanny more than $1,900 per year.[CC1] There are, however, several qualifiers and exceptions, so check the IRS guidelines. And because of how close families tend to get with beloved nannies, generous birthday and holiday gifts and paid vacation usually become part of the package as well.

Child Care Resources

Just so you know, What to Expect may earn commissions from the shopping links included on this page.

Recommended Products

Au Pair

What it is: A young woman or man, typically age 18 to 26, from another country who comes to the U.S. on a work visa. Specialized agencies screen and train candidates and facilitate the process. Au pairs live in your house, caring for your kids for a predetermined number of hours per week, usually for a period of 12 months.

Pros: You’re getting full-time, in-home, one-on-one care for much less than what a nanny costs. This is partly because the au pairs consider being hosted in the United States for a year as part of their compensation, and partly because the U.S. government sets the stipend that such workers can be paid. They can be a good choice if you have several school-age children with changing schedules, or if your work schedule fluctuates. You can set the au pair’s schedule on a weekly basis, as long as the total number of hours doesn’t exceed the agreed-upon limit. Many families also love the cultural aspect: Au pairs come from dozens of different countries, bringing stories, pictures, music and recipes of their homeland with them.

Cons: Unlike career nannies, au pairs don’t necessarily want to make child care their life’s work — which means they may not have the same level of enthusiasm and devotion. And while they all speak at least basic English, they aren’t familiar with this country — let alone your town, which means they come with what can be a fairly steep learning curve. They’re also not professionally trained child care workers, so you can’t leave your kids with them for extended periods of time (say, if you go on a business trip or vacation). Also be aware that they don’t take care of other housework not related to child care.

Cost: Approximately $1460 a month ($365 a week), which doesn’t vary by where you live. The agency insures the applicants it places, so you don’t need to.

Relative Caregiver

What it is: A family member (mother, sister, father, aunt, etc.) who cares for your child, either from his/her home or yours.

Pros: It might seem like a dream come true to have a relative care for your baby: Who better to love and nurture your child?

Cons: Keep in mind that caring for a newborn is a very demanding job. Is the relative in question up to the task? Your mom might indeed be willing, but is she actually able? Older parents might not remember just how much work a baby can be. Also consider the impact this situation could have on your relationship. Will you be comfortable telling your relative how you want things done? Sometimes it’s easier to boss around a nanny than tell a family member what to do. Do you think you and this relative will be able to weather any conflicts that arise? If not, it may not be worth jeopardizing your relationship by creating a potentially volatile situation. If you consider these issues and still want to proceed with relative care, be clear from the get-go about pay (if there is money involved), hours and duties, and be sure to have a back-up plan in place for days when your caregiver is ill or away.

Cost: Up to you, though you may want to at least offer a weekly stipend for costs related to caring for your child.

Babysitter

What it is: Someone who takes care of a child in her or her own home for a short period of time and is paid by the hour. Years ago, high school babysitters who’d work for little more than permission to raid your fridge were everywhere. Now — with high schoolers loaded with extra-curriculars, community service and college test prep — they’re scarce. The torch has been passed to college students, and occasionally women with grown children, looking to make extra money. Due to their limited availability, they’re usually used by moms who are working or attending school part-time, and/or for the occasional night out.

Pros: If all you want is someone who will keep your child happy for a few hours, they’re an inexpensive solution. And you can often get one last-minute.

Cons: Babysitters are usually not trained in any formal way and may not have enough experience to be able to properly care for children younger than 3. They tend to work out well with school-age kids who are fairly self-sufficient.

Cost: It varies a lot based on where you are. At the low end, in Denver it’s under $11 an hour. But in New York City, you’re looking at upwards of $15 per hour, according to Urban Sitter’s 2014 pay survey. Sitters who are certified in CPR and first aid command more. And no matter where you live, you can expect to pay a higher rate for hours after midnight and holiday weekends.

Baby Sitter Resources

Just so you know, What to Expect may earn commissions from the shopping links included on this page.

Recommended Products

Overnight Sitter

What it is: A.k.a. a “night nanny,” this person stays overnight (often because a single parent works nights or is on a business trip). In a way, this is an easy gig for the sitter (she’ll be asleep most of the time anyway) — but since bedtime can be tricky for some kids, make sure you establish routines and procedures in advance. And if you have a baby, knowledge of safe sleep best practices is an absolute must.

Pros: If you work the night shift, it’s comforting to know that your child is in his or her own bed, with everything that might be needed or wanted right there.

Cons: If your child has a hard time settling down at night, is a restless sleeper prone to nightmares or has bedwetting issues, you might be better off with a grandparent, aunt or other close relative or friend helping out.

Cost: Overnight sitters generally receive the same hourly rate (above) as daytime sitters. Check out Care.com’s pay calculator to figure out rates based on zip code and other criteria.

Read Next:

From the What to Expect editorial team and Heidi Murkoff, author of What to Expect the First Year. Health information on this site is based on peer-reviewed medical journals and highly respected health organizations and institutions including ACOG (American College of Obstetricians and Gynecologists), CDC (Centers for Disease Control and Prevention) and AAP (American Academy of Pediatrics), as well as the What to Expect books by Heidi Murkoff.